That is were one of the mounting screws for the carb to tank. If there i gas coming out of that hole, I would think there are other issues.
It was the one on top. Not exactly sure what was going on. All of a sudden, engine wouldn't pull start. Had to wiggle it free. Then it would pulled several times, then lock up again. took the chipper off the back, and the head off. Turn it over about 1/2 way, each way. And stop. Cylinder was scorn real bad in two places. Exhaust valve burned.
Once everything, including the back (exposing the crank, cam etc etc) engine stopped locking up all together. Free as a bird. Oil was very gray. Timing was dead on.
Maybe exhaust valve stuck, blew back threw carb and exited out that hole somehow.
Still not sure what made the engine just stop turning.